AEPC seeks halt in NPA declaration, freezing EMIs for 1 year, Retail News, ET Retail

New Delhi : The Apparel Export Advertising Council (AEPC) has sought a suspension in declaration of non-undertaking property (NPA) and raising the moratorium time period on time period mortgage EMIs to a person yr.

In a letter to the Commerce and Sector Minister Piyush Goyal, AEPC Chairman A. Sakthivel wrote: “Non-declaration of companies’ accounts as NPAs could be prolonged for a bare minimum of a person yr as the lack of business coupled with preset expenses will make accounts as NPAs.

“Phrase mortgage EMIs need to be postponed by a person yr and RBI could prolong the invoice realization time period by six months in check out of the liquidity worries.”

Further more, the council has requested for extension of the Foreign Trade Plan 2015-20 for a even more time period of six months thinking of the crisis owing to coronavirus pandemic, and a reintroduction of the MEIS plan for apparel exporters with effect from March 7, 2019 and that it carry on over and above March 31, 2020.

The reimbursement of Rebate of Condition and Central Taxes and Levies (RoSCTL) could be specified as ‘Direct Hard cash Transfer’, as in the circumstance of erstwhile ROSL and disadvantage, Sakthivel stated.

He also requested for extending the validity of all import instruments like EPCG and Export Obligations Intervals (EOP) by a even more twelve months with no penalty.

Sakthivel also highlighted the need for extending the packing credit rating time period for existing financial loans by six months. Interest Equalization Plan need to be improved from three per cent to 5 per cent for all apparel exporters and prolonged for a time period of two many years up to March 31, 2022, he demanded.

“Restructuring of financial loans and existing limitations ought to not be dealt with as downgrading of account and there need to be no penalty on cancellations. This will enable firms to evolve and uncover techniques to float,” he stated.

On easing out labour compliances, Sakthivel appealed the federal government to add wages and salaries of the staff for the lockdown time period and requested approval to allow business to defer payment of PF, ESI and electric power expenses by a few months.

“We are grateful for all the guidance prolonged to minimise the adverse effects of the current problem to apparel exports and we are hopeful that these actions will, to a sure extent, enable the business to get over the existing liquidity crisis,” he stated.